General Condition of Contract GCC

1 1 General Condition OF Contract (GCC) 1. Definitions In this Contract the following terms shall be interpreted as indicated: a) IFB means Invitations for Bids . b) ITB means instruction to Bidders. c) GCC means General Condition of Contract . d) RC means Rate Contract . e) Contract means a legal agreement entered into between the purchaser and the supplier, as recorded in the agreements signed by the parties, including all attachments and appendices thereto and all documents incorporated by reference therein. f) Contract Price means the price payable to the supplier under a Contract for the full and proper performance of the contractual obligations. g) Goods means all the items, materials, equipment and/or machinery, which the supplier is required to supply to the purchaser in terms of a Contract .

2 H) Services means the services ancillary to the supply of the goods, such as transportation and insurance and as any other incidental services, such as installation, commissioning, provision of technical assistance, training and other such obligation of the supplier covered under a Contract . i) Purchaser means the buyer named in a bidding document and in the corresponding Contract , purchasing the goods orders and includes its successors and /or assignees. j) Consignee means the individual or body to whom the contracted goods are required to be delivered as per the terms and conditions incorporated in a Contract . k) Supplier means the individual or firm supplying the goods under a Contract and includes its successor and /assignees.

3 L) Day means calendar day of the Gregorian Calendar. m) Month means calendar month of the Gregorian Calendar. 2. Application These General conditions of Contract (as contained in this section) shall apply to the extent they are not superseded by provisions in other parts of the Contract . 3. Country of origin. All goods and services supplied under the Contract shall have their origin in India or in the countries, with which the Government of India has trade relations. 2 For purposes of this clause, origin means the place where the goods are mined, grown or produced or from which the services are supplied. Goods are produced when, through manufacturing, processing and substantial or major assembling of components, a commercially recognized new product results that is substantially different in basic characteristics or in purpose or utility from its components.

4 The origin of goods and services is distinct from the nationality of the supplier. 4. Standard The goods supplied under this Contract shall confirm to the standards mentioned in the Technical Specifications and when no applicable standard is mentioned, to the latest authoritative standard as applicable to the goods country of origin. 5. Use of Contract documents and information The supplier shall not, without the purchaser s prior written consent, disclose the Contract or any provision thereof or any specification, plan, drawing, pattern, sample or information furnished by or on behalf of the purchaser in connection herewith, to any person other than a person employed by the supplier in the performance of the Contract .

5 Also, disclosure to any such employed person shall be made in confidence and shall extend only so far as may be necessary for the purposes such performance. The supplier shall not, without the purchaser s prior written consent, make use of any document or information enumerated in GCC sub-clause except for the purposes of performing the Contract . Every document other than the Contract itself, mentioned in GCC sub-clause , shall remain the property of the purchaser and shall be returned (in all copies) to the purchaser on completion of the supplier s performance under the Contract , if so required by the purchaser. 6. Patent rights The supplier shall at all times indemnify the purchaser, free of cost, against all third-party claims of infringement of patent, trade mark or industrial design rights arising from use of the goods or any part thereof in India.

6 3 7 Performance security Within 21(twenty one) days after the issue of notification of award by the purchaser, the supplier, shall furnish performance security to the purchaser for an amount of 10%(ten percent) of the Contract value, valid up to 60(sixty) days after the date of completion of all contractual obligations by the supplier, including the warranty obligations. In the event of any correction of defects or a replacement of defective material during the warranty period, the warranty for the corrected/replaced material shall be extended to a further period of twelve months from the date of the correction/ replacement and the Performance Security for the proportionate value (which will be determined by the purchaser in consultation with the supplier) shall be extended by 60(sixty) days over and above the extended warranty period.

7 In the event of any Contract amendment, the supplier shall, within 21(twenty one) days of issue of such amendment, furnish the necessary amendment to the Performance Security, rendering the same valid in all respects in terms of the Contract , as amended. The proceeds of the Performance Security shall be payable to the purchaser as compensation for any loss resulting from the supplier s failure to complete its obligations under the Contract . The Performance Security shall be denominated in Indian Rupees or in the currency of the Contract and shall be in one of the following forms: a. Cash in Indian currency. b. Demand Draft on any scheduled commercial bank in India, to be drawn in favour of the purchaser as indicated in the Schedule of Requirements.

8 C. Bank Guarantee issues by a scheduled commercial bank in India, in the prescribed form as provided in section VII/4 of this bidding documents. Subject to GCC sub- clause above, the performance security will be discharged by the purchaser and returned to the supplier on completion of the supplier s contractual obligations including the warranty obligations under the Contract . 4 8 Inspection and testes. The purchaser and /or its nominated representative(s) shall have the right to inspect and/or to test the goods to confirm their conformity to the Contract specification and other technical details incorporated in the Contract at no extra cost to the purchaser. The schedule of Requirements and the Technical Specification, incorporated in the bidding document, shall specify what inspections and tests, the purchaser requires and where and how they are to be conducted.

9 The purchaser shall notify, in advance, the supplier in writing, of the identity of any representative(s) for this purpose. The inspections and tests may be conducted on the premises of the supplier or its subcontractor(s), at the point of delivery and/or at the goods final destination. If conducted on the premises of the supplier or its subcontractor(s), all reasonable facilities and assistance, including access to relevant drawings, design details and production data, shall be furnished by the supplier to the inspectors at no charge to the purchaser. Should any inspected or tested goods fail to conform to the required specifications and standards, the purchaser may reject them and the supplier shall either replace the rejected goods or make all alterations necessary to meet the specifications and standards, as required, free of cost to the purchaser and resubmit the same to the purchaser for conducting the inspections and tests again.

10 Where the Contract stipulates pre-despatch inspection by the purchaser s nominated inspecting agency, the supplier shall put up the goods for inspection to the inspecting agency well ahead of time so that the inspecting agency is able to complete the inspection within the stipulated delivery period. If the goods are tendered for inspection at the last moment without providing reasonable time to the inspection agency for completing the inspection, the inspecting agency may carry out the inspection and complete the formality beyond the contractual delivery period at the risk and expense of the supplier. The fact that the items have been inspected after the contractual delivery period will not have the effect of keeping the Contract alive and this will be without any prejudice to the legal rights and remedies available to the purchaser under the terms & conditions of the Contract .